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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: Maxwell who wrote (8343)	11/5/1997 5:00:00 PM
From: D.J.Smyth	Respond to of 25960

Maxwell & Tide. If CYMI decided to do a share buyback (anything is possible and I'm not sure why i'm even commenting on this other than to clarify a point)they would generally go into the market quietly and begin to buy back shares without a public announcement. after the share buyback was complete, they then would most likely make the announcement that a share buyback program has been in effect. this particular technique would help CYMI for the immediate time given it's small float and depressed price. they could use the repurchased shares as options for executives. a share buyback program, then, would be viewed as nothing more than a program to increase the potential income for executives. the benefits, of course, would be to help subdue much of the shorted interest. executives could take option on the shares at a price commensurate to or lower than the repurchase price and sell into the open market at their leisure. the executives could also decrease portions of their current salary in anticipation of receiving options payable in shares. the cost to CYMER could be minimal and the benefits much greater, but i don't think CYMI will follow this path and obviously neither do those short this company. CYMI brought this on themselves. that is not to say that the analysts had not already planned this scenario (which i believe they did) and CYMI aided and abetted whether innocently or knowingly. the shorts believe that they have CYMI at "check" and are looking for "check-mate". Cymer has the facts and numbers on their side, but without proper communciation facts are worth about $22 7/8 a share.